Energy company Santos has taken a decisive step alongside its partner Beach Energy by approving the final investment for the Moomba Central Optimization Project (MCO), located in the Cooper Basin, in northern South Australia. This initiative, valued at $357 million net to Santos, marks the beginning of a significant transformation in the region’s gas infrastructure.
As part of the project, seven aging compressor stations will be replaced by a single state-of-the-art electric facility at the Moomba gas plant. This technological upgrade aims to streamline upstream operations, increase process reliability, and lay the groundwork for increased future production in the central Cooper Basin fields.
Operational Efficiency Following Moomba Investment
With an estimated internal rate of return exceeding 25% after full field development, the MCO is positioned as a high-value investment. It is expected to generate over $600 million in operational and capital savings over the project’s lifetime. Additionally, implementation of the new system will reduce unit production costs by up to $3 per barrel of oil equivalent.
Beyond economic benefits, the project will also contribute to the company’s climate objectives. Electrification of the infrastructure is estimated to reduce Scope 1 emissions by more than 40,000 tonnes of CO2 equivalent annually. This reinforces Santos’ commitment to energy efficiency and the gradual decarbonization of its operations.
Government Relations and Long-Term Vision
Santos recently signed a preliminary agreement with the state government to supply 20 petajoules of gas annually from 2030 as part of the Strategic Gas Reserve. Advance funds from this agreement will be allocated to strengthen execution of the MCO project, extending field life and guaranteeing skilled jobs beyond 2040.
With more than six decades as a pillar of national supply, the Cooper Basin maintains its leading role thanks to this renewal. The MCO project not only modernizes its key infrastructure, but also secures its strategic role in gas supply for southern and eastern Australia in the coming decades.
Source: Santos
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